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Why would I use the Interest Saver ProgramTM?
By using the Program you will be able to...
- Significantly reduce the interest expense you will pay over the life of your loan.
- Cut years off the term of your fixed rate loan. For example...A new homeowner who begins the Interest Saver Program
TM with the first mortgage payment on an 8% loan for $80,000 can expect to save:
| Original Term |
Interest Saved/$ |
Time Savings |
| 30 Years |
$39,600 |
8 Years & 1 Month |
| 15 Years |
$ 9,500 |
2 Years & 3 Months |
- Make your life easier. You'll no longer have to worry
about writing a check and getting it in the mail on time. The Interest Saver
ProgramTM payments will be automatically drafted
from your checking or savings account.
- The bottom line is simple . . . by taking the
initiative and enrolling in our structured program, you'll be making a commitment
towards slashing your total borrowing cost while building equity in your home
and, most importantly, becoming debt free!
How does the Interest Saver ProgramTM work?
By slightly speeding up the
amount you pay to principal you race, rather than crawl, toward the payoff of
your loan. The quicker the payoff the greater the total interest savings.
- Your current large house payment is broken down into
smaller pieces. Depending upon how often you get paid, you'll either make
payments every-other week (biweekly) or twice a month (semi-monthly). Remember,
you don't write a check, we draft these payments automatically.
- Over the course of a year you will have made a total
of 13 full monthly payments. 100% of the extra payment goes to the principal
balance of your loan.
- Because we time your mortgage payments more closely with
your paychecks, most customers report they don't feel that they have paid extra
to principal over the course of the year.
How should I decide which version of the Program is right for me?
Base your decision on the timing of your paychecks.
- If you are paid weekly or biweekly (every other Friday, for
example), you should choose the BIWEEKLY VERSION.
- If you are paid twice a month (example: 1st and 15th) or
if you are only paid once a month, the SEMI-MONTHLY VERSION will work
better for you.
How do you determine the amount of my Interest Saver ProgramTM payments?
The answer depends on the version of the Program you elect.
- With the BIWEEKLY version, each draft will be
equal to one-half of your current full monthly payment. By making 26
half-payments per year you will have made the equivalent of 13 full monthly
payments. All extra funds are applied to the principal balance. One dollar
per draft is included in the amount debited from your account to cover the
electronic funds transfer.
- In the SEMI-MONTHLY version, the draft amount
will be just slightly more than one-half of your current full monthly payment.
There will be 24 drafts per year totaling 13 full monthly payments. All extra
funds are applied to the principal balance each month. One dollar per draft is included in
the amount debited from your account to cover the electronic funds transfer.
The results of the Interest Saver ProgramTM are dramatic. But what if
I want to payoff my home even faster?
- When it comes to your mortgage, a little bit extra goes a long way. An additional $25 or $50 per
draft might appear to be hardly worth the effort. You will be surprised
just how much these small additional amounts per draft will shorten your
mortgage and increase your interest savings.
- Use your participation in the Interest Saver ProgramTM as a powerful financial planning tool.
Colonial Savings
can tell you how much extra you need to pay per draft to have your home
paid off by a specific future date.
What is the cost to participate in the Interest Saver ProgramTM?
NO ENROLLMENT FEE is required if your loan is enrolled in the ISP WITHIN
THE FIRST SIX MONTHS of
Colonial Savings
commencing the servicing of your loan.
If you choose to enroll after the end of this six month period, a non-refundable enrollment fee of $100 is required to join the
ISP.
Can I quit the Program?
Of course you may. Just give us a 30 day written notice and you may terminate your participation at any time.
NOTE: If your loan is enrolled in the Program without the normal $100 enrolment fee, and you terminate the Program within the first 9 months of your participation, an early termination charge will be assessed. In such a case, the early termination charge will be assessed at the rate of $10 per month for each month remaining in the 9 month period.
How can I find out what I'll actually save by enrolling in the Interest Saver ProgramTM?
Colonial Savings
will prepare a customized savings analysis for you absolutely FREE!
No strings. No obligation to sign up. Just fill out the
Interest Saver Program™ Information Request and send it in. Once we receive your request, we will contact you within one business day. Why are you waiting?
How do I contact you regarding the Interest Saver Program?
Call us toll-free on 1-800-937-2340.
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